CW Pakistan
  • Legacy
    • Legacy Editorial
    • Editor’s Note
  • Academy
  • Wired
  • Cellcos
  • PayTech
  • Business
  • Ignite
  • Digital Pakistan
  • DFDI
  • PSEB
  • PASHA
  • TechAdvisor
  • GamePro
  • Partnerships
  • PCWorld
  • Macworld
  • Infoworld
  • TechHive
  • TechAdvisor
0
0
0
0
0
Subscribe
CW Pakistan
CW Pakistan CW Pakistan
  • Legacy
    • Legacy Editorial
    • Editor’s Note
  • Academy
  • Wired
  • Cellcos
  • PayTech
  • Business
  • Ignite
  • Digital Pakistan
  • DFDI
  • PSEB
  • PASHA
  • TechAdvisor
  • GamePro
  • Partnerships
  • Cellcos

Pakistan’s Telecom Sector Demands Uniform GST and Reduced Withholding Tax in Budget 2025

  • June 5, 2025
Total
0
Shares
0
0
0
Share
Tweet
Share
Share
Share
Share

The telecom sector in Pakistan has formally submitted its tax-related budget proposals for the fiscal year 2025, calling for a reduction in Withholding Tax (WHT) on subscribers and a nationwide harmonization of General Sales Tax (GST) at a lower rate of 16 percent. Currently, the sector faces a cumulative tax burden of 34.5 percent—comprising 15 percent WHT on subscribers and 19.5 percent GST on services. Sector stakeholders argue that this level of taxation is detrimental to both consumers and operators, and they propose a gradual reduction of WHT from 15 percent to 10 percent, ultimately seeking its complete elimination.

The proposals urge policymakers to align the GST rate for telecom services across all provinces and Islamabad Capital Territory. In addition to uniform GST, the industry has recommended reinstating advance tax provisions from the Finance Act 2021 to help improve the purchasing power of customers, most of whom fall below the taxable income threshold.

Industry representatives highlighted the operational strain caused by WHT obligations. Cellular Mobile Operators are required to deduct or collect income tax on a large volume of transactions, including electricity bills for thousands of cell sites. This process increases compliance costs and administrative workload. Moreover, verifying these tax deductions is often not feasible, resulting in unnecessary procedural burdens.

The sector is also pushing for a shift in how WHT is treated under Section 153. Currently applied as a minimum tax, the industry proposes this be made adjustable instead. The present approach, they argue, effectively transforms a direct tax into an indirect one, since the tax liability is detached from actual income, applying regardless of profitability. The telecom sector has emphasized that this contradicts standard tax principles and is especially punitive during loss-making years.

Another significant demand includes increasing the carry-forward period for minimum tax credit under Section 113 from three years to five years, restoring it to the position prior to the Finance Act 2024. Given that the telecom sector’s return on investment typically spans 8 to 10 years, the current limitation is seen as unsustainable, particularly for operators still operating below profitability thresholds.

Additionally, the sector has requested the removal of regulatory duty on telecom power equipment not manufactured locally and proposed excluding telecom services from the retail price list, since they do not import goods for direct consumer sales.

Aamir Ibrahim, CEO of Jazz and Chairman of Telecom Operators Association, has strongly emphasized the negative implications of excessive taxation. He stated that over-taxation not only reduces affordability for end users but also discourages investment in the sector. According to him, Pakistan’s tax system disproportionately targets a small base of compliant taxpayers and industries, and he stressed the need to widen the tax net instead of overburdening existing contributors. He reiterated that telecom should be treated as an essential utility rather than a luxury, and fiscal policy must reflect its critical role as the digital infrastructure supporting all other sectors.

Share
Tweet
Share
Share
Share
Related Topics
  • budget 2025 proposals
  • Digital Economy
  • GST on telecom
  • ICT tax harmonization
  • Jazz CEO Aamir Ibrahim
  • Pakistan telecom taxation
  • telecom equipment import
  • telecom regulatory duty
  • telecom sector Pakistan
  • telecom tax reform
  • WHT reduction
Previous Article
  • Ignite

Top 20 Insights from the Year’s Best AI Report Highlight Explosive Growth and Global Impact of ChatGPT and AI Technologies

  • June 4, 2025
Read More
Next Article
  • Digital Pakistan

Yango Collaborates with ICT Police to Strengthen Rider Safety Through Smart App Integration

  • June 5, 2025
Read More
You May Also Like
Read More
  • Cellcos

CMPak And Huawei Deploy High-Power FDD 8x120W Network Solution To Enhance Efficiency And Coverage

  • Press Desk
  • October 19, 2025
Read More
  • Cellcos

Government Subcommittee Fails To Resolve Telecom Companies’ Unpaid Dues Dispute

  • Press Desk
  • October 19, 2025
Read More
  • Cellcos

PTCL Group And PPAF Expand Ba-Ikhtiar Initiative To Empower Over 2,300 Women Across Pakistan

  • Press Desk
  • October 19, 2025
Read More
  • Cellcos

PTCL Restores Submarine Cable But Karachi Users Report Slow Internet Speeds

  • Press Desk
  • October 18, 2025
Read More
  • Cellcos

Zong Partners With Pakistan Idol To Bring A Digital Music Experience For Pakistan

  • Press Desk
  • October 16, 2025
Read More
  • Cellcos

CCP Orders PTCL To Unbundle Operations After Merger With Telenor Pakistan

  • Press Desk
  • October 16, 2025
Read More
  • Cellcos

Pakistan Internet Users May Face Disruptions Due To Undersea Cable Repair

  • Press Desk
  • October 15, 2025
Read More
  • Cellcos

Tapmad Expands To Bangladesh Through Partnership With Grameenphone For Sports Streaming

  • Press Desk
  • October 15, 2025
Trending Posts
  • Misk Foundation Opens Applications For 20 Under 30 To Recognize Young Global Innovators
    • October 19, 2025
  • Pakistan And Romania Discuss Strengthening Digital Cooperation And Economic Collaboration
    • October 19, 2025
  • inDrive Launches Aurora Tech Award 2026 For Female Tech Founders
    • October 19, 2025
  • CMPak And Huawei Deploy High-Power FDD 8x120W Network Solution To Enhance Efficiency And Coverage
    • October 19, 2025
  • Algorand Networking Meetup In Karachi To Foster Innovation And Collaboration
    • October 19, 2025
about
CWPK Legacy
Launched in 1967 internationally, ComputerWorld is the oldest tech magazine/media property in the world. In Pakistan, ComputerWorld was launched in 1995. Initially providing news to IT executives only, once CIO Pakistan, its sister brand from the same family, was launched and took over the enterprise reporting domain in Pakistan, CWPK has emerged as a holistic technology media platform reporting everything tech in the country. It remains the oldest continuous IT publishing brand in the country and in 2025 is set to turn 30 years old, which will be its biggest benchmark and a legacy it hopes to continue for years to come. CWPK is part of the SPIN/IDG Wakhan media umbrella.
Read more
Explore Computerworld Sites Globally
  • computerworld.es
  • computerworld.com.pt
  • computerworld.com
  • cw.no
  • computerworldmexico.com.mx
  • computerwoche.de
  • computersweden.idg.se
  • computerworld.hu
Content from other IDG brands
  • PCWorld
  • Macworld
  • Infoworld
  • TechHive
  • TechAdvisor
CW Pakistan CW Pakistan
  • CWPK
  • CXO
  • DEMO
  • WALLET

CW Media & all its sub-brands are copyrighted to SPIN-IDG Wakhan Media Inc., the publishing arm of NCC-RP Group. This site is designed by Crunch Collective. ©️1995-2025. Read Privacy Policy.

Input your search keywords and press Enter.